Germany's biggest landlords agree $22 bln merger

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Germany's two biggest listed landlords Vonovia SE (VNAn.DE) and Deutsche Wohnen have agreed to join forces in a 18 billion-euro ($22 billion) deal that risks stoking tensions over affordable housing in the run-up to general elections in September.

An office building of the German property group Deutsche Wohnen is pictured in Berlin, Germany June 2, 2020. REUTERS/Fabrizio Bensch/File Photoand Deutsche Wohnen have agreed to join forces in a 18 billion-euro deal that risks stoking tensions over affordable housing in the run-up to general elections in September.

"The housing market is broken. Supply and demand do not just adjust like on the market for potatoes due to the long construction cycles and the limited availability of land," he said in an emailed statement.To try to secure support for the tie-up, the two companies pledged to limit regular rent increases to 1% per year in Berlin for the next three years and to inflation-adjusted increases for the following two years.

Under the agreed terms, Vonovia will pay 52 euros per share and Deutsche Wohnen shareholders will retain the rights to a 1.03 per share dividend, Vonovia said in a statement late on Monday.Shares in Deutsche Wohnen rose as much as 16.4% on the news while Vonovia shares fell as much as 6.8%.The chief executive of Vonovia, with property in Austrian, German and Swedish cities, cited a need to make apartments more energy efficient and more suitable for the elderly.

 

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nice

How capitalist for a socialist society.

Bones the city are there, and the wall are famous, following the sun, has been destroyed 😉

well this cant be good for the little people

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